#China #Belt and Road #China-Laos Railway #Economic Development #Kunming

China-Laos Railway: A New Engine for Economic Development

The China-Laos Railway, a centerpiece of the Belt and Road Initiative, has celebrated remarkable success in its first three years of operation. Official figures report that the railway has facilitated over 43 million passenger journeys and transported a staggering 48.3 million tons of goods since its inauguration on December 3, 2021. This 1,035-kilometer line connects Kunming in China with Vientiane, the capital of Laos, promoting easier travel and trade between the two nations.

Growing Passenger and Cargo Traffic

Initially, the passenger traffic was around 600,000 trips per month. However, this number has seen consistent growth, recently reaching approximately 1.6 million monthly trips. Similarly, cargo transportation has expanded dramatically. The number of daily cross-border cargo train services has increased from just two to 18, showcasing a significant rise in trade activity across the region.

A total of 10.6 million tons of cross-border goods have been transported on the railway, serving 19 countries and regions, including Thailand, Vietnam, and even Singapore. The diversity of transported goods has surged from about 500 types at the start to over 3,000 today, with peak freight volumes surpassing 510,000 tons monthly — a staggering 12.6 times increase compared to the railway's launch month.

Economic Impact on Exports and Imports

Financially, the railway has enhanced trade flows significantly. In the first 11 months of this year alone, Kunming Customs reported that 4.34 million tons of goods worth around 16.81 billion yuan ($2.3 billion) were conveyed through this route, surpassing the entire total for 2023. Notably, Chinese exports of fruits via the railway have seen astronomical growth — 158 million yuan worth, which is a year-on-year increase of more than 51 times. Simultaneously, imports surged to 3.81 billion yuan, marking a 79.3% rise compared to the previous year.

Zhang Zhongyi, a retailer handling Lao bananas, illustrated the transformation brought by the railway. Previously, Lao bananas were transported over long distances by caravan, incurring high damage rates and costs. Since implementing a cold chain transportation system via the railway, delivery timelines have been dramatically shortened, effectively enhancing the produce's freshness upon reaching consumers in China.

Boosting Tourism Along the Route

The railway has also spurred tourism development, linking important urban centers in Yunnan with over 560 tourist destinations in Laos. Passengers traveling this route have reported positive experiences. One traveler, Shi Yang from Beijing, recounted her May 2023 journey, praising the comfort and speed of the service. The transition from costly flights to a more affordable, efficient train journey has made travel to Laos significantly more attractive to Chinese tourists.

"I feel that the convenience provided by the railway will lead to a rise in Chinese tourists visiting Laos," Shi stated, emphasizing that she has recommended this travel option to her circle.

Conclusion

Overall, the China-Laos Railway has emerged as a vital artery for economic activity in the region, enhancing connectivity and opportunities for trade, travel, and cultural exchange. With its impressive achievements in both passenger volume and cargo transportation over the past three years, the railway is poised to continue its role as a transformative force in the economic landscape of Southeast Asia.